IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v72y1990i3p529-538..html
   My bibliography  Save this article

Acreage Decisions Under Risk: The Case of Corn and Soybeans

Author

Listed:
  • Jean-Paul Chavas
  • Matthew T. Holt

Abstract

An acreage supply response model is developed under expected utility maximization. The resulting framework is used to specify and estimate a system of risk-responsive acreage equations for corn and soybeans in the United States. Particular attention is given to the truncation effects of government price supports on the distribution of corn and soybean prices. Also, a wealth variable is included in the acreage equations. The empirical results indicate that risk and wealth variables play an important role in corn-soybean acreage decisions. The analysis also shows that cross-commodity risk reduction is important in acreage allocation decisions.

Suggested Citation

  • Jean-Paul Chavas & Matthew T. Holt, 1990. "Acreage Decisions Under Risk: The Case of Corn and Soybeans," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 529-538.
  • Handle: RePEc:oup:ajagec:v:72:y:1990:i:3:p:529-538.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1243021
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. B. Wade Brorsen & Jean-Paul Chavas & Warren R. Grant, 1987. "A Market Equilibrium Analysis of the Impact of Risk on the U.S. Rice Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(4), pages 733-739.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Burton, Diana M. & Love, H. Alan, 1996. "A Review of Alternative Expectations Regimes in Commodity Markets: Specification, Estimation, and Hypothesis Testing Using Structural Models," Agricultural and Resource Economics Review, Cambridge University Press, vol. 25(2), pages 213-231, October.
    2. Epperson, James E. & Huang, Wan-Tran, 1992. "The Potential For Intraseasonal Market Flow Management Of Southeastern Sweet Potatoes," Journal of Food Distribution Research, Food Distribution Research Society, vol. 23(2), pages 1-8, June.
    3. Griffith, Garry R. & Moore, Walter B., 1991. "Livestock Production Policies And Meat Processing Margins: The Case Of New Zealand, 1967-1988," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(1), pages 1-28, April.
    4. Holt, Matthew T., 1989. "Risk, Rational Expectations, and Price Stabilization in the U.S. Corn Market," Staff Papers 200480, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    5. Julie SUBERVIE, 2006. "The impact of world price instability on agricultural supply according to several macroeconomic factors," Working Papers 200604, CERDI.
    6. Michael S. Haigh & Henry L. Bryant, 2000. "The effect of barge and ocean freight price volatility in international grain markets," Agricultural Economics, International Association of Agricultural Economists, vol. 25(1), pages 41-58, June.
    7. Joyce Hall Krause & B. Wade Brorsen, 1995. "The Effect of Risk on the Rental Value of Agricultural Land," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(1), pages 71-76.
    8. Miranda, Mario J & Glauber, Joseph W, 1993. "Estimation of Dynamic Nonlinear Rational Expectations Models of Primary Commodity Markets with Private and Government Stockholding," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 463-470, August.
    9. Krause, Mark A. & Lee, Jung-Hee & Koo, Won W., 1995. "Program And Nonprogram Wheat Acreage Responses To Prices And Risk," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-12, July.
    10. Lee, Jung-Hee & Brorsen, B. Wade, 1994. "Effect of Risk Aversion on Feeder Cattle Prices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(2), pages 386-392, December.
    11. Chavas, Jean-Paul & Holt, Matthew T., 1989. "An Analysis of Acreage Decisions Under Risk: The Case of Corn and Soybeans," Staff Papers 200476, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    12. Jeon, Jong-Pyeong, 1989. "The impacts of policy alternatives and foreign demand fluctuations on the US rice market," ISU General Staff Papers 1989010108000010204, Iowa State University, Department of Economics.
    13. Chen, Dean T. & Ito, Shoichi, 1989. "Modeling Supply Response for Rice Program Analysis: An Application of Implicit Revenue Switching Functions," Staff Reports 257924, Texas A&M University, Agricultural and Food Policy Center.
    14. Holt, Matthew T. & Aradhyula, Satheesh V., 1991. "Endogenous Risk in a Rational-Expectation Model of the U.S. Broiler Market: A Multivariate Arch-M Approach," Staff Papers 200538, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    15. David S. Bullock & Philip Garcia & Kie‐Yup Shin, 2005. "Measuring producer welfare under output price uncertainty and risk non‐neutrality," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 1-21, March.
    16. Bauer, Leonard & Jeffrey, Scot R. & Orlick, Charles C., 1995. "A Comparison of Risk Between Continuous and Fallow Cropping Regimes," Project Report Series 206942, University of Alberta, Department of Resource Economics and Environmental Sociology.
    17. Holt, Matthew T., 1992. "Modelling Risk Response in the Marketing Channel for Beef: A Multivariate Generalize Arch-M Approach," Staff Papers 200546, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    18. Krause, Joyce Hall & Brorsen, B. Wade, 1995. "Outcomes of government corn support policies under alternate assumptions of risk," Journal of Policy Modeling, Elsevier, vol. 17(3), pages 279-291, June.
    19. Mendoza, Meyra S. & Rosegrant, Mark W. & Brorsen, Wade, 1992. "Aggregate Corn Area Response Under Risk: Some Implications for Price Stabilization Programs," Philippine Journal of Development JPD 1992 Vol. XIX No. 2-d, Philippine Institute for Development Studies.
    20. Lence, Sergio Horacio, 1991. "Dynamic firm behavior under uncertainty," ISU General Staff Papers 1991010108000010656, Iowa State University, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:72:y:1990:i:3:p:529-538.. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) The email address of this maintainer does not seem to be valid anymore. Please ask Oxford University Press to update the entry or send us the correct email address or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.